Based on the previous work published in 1970 by George A. Akerlof along with Michael Spence and Joseph Stiglitz, this research paper investigates the automobile market in Lebanon. The main theory adopted in this paper is the Lemons market theory which explores consumer's behavior under...

We specify an equilibrium model of car ownership with private information where individuals sell and purchase new and second-hand cars over their life-cycle. This private information introduces a transaction cost, distorts the market and reduces the value of a car as a savings instrument. We...